07th Jan 2018
Influencer marketing has always been a popular tactic for businesses, I even recall using it back when I was working in fashion marketing, over 4 years ago now. And back then, we were paying around $500US a pop to have an influencer take a ‘selfie’ wearing our product! Whilst it sounds like a lot of money for someone to simply click a button on their iPhone, the return on our investment was around 900% increase, for one photo.
Times have changed since then, and whilst you can still get some just as beneficial micro influencers working for under $500 a shot, the price of a mega influencer these days can start from $1200 depending on their social following and engagement rates. Instagram showed the seriousness of the influencer impact in June 2017, when they launched a branded content program to show audiences what posts were sponsored and also make it easier for businesses to track their ROI.
So, if you’re thinking about investing in some influencer marketing, it’s best to know the rights and wrongs of such a campaign, and also to know what you can and can’t ask for. Influencer marketing like all marketing has some regulations you need to follow.
To help you understand this a little better, we asked none other than Marianne from Legalite to shed some light.
WORKING WITH INFLUENCERS
-By Marianne, Founder of Legalite
Does your business work with influencers?
An influencer is someone who has the power to affect the purchasing decisions of others. They usually have a large following (often on social media) and some perceived authority or expertise in the eyes of the people who listen to them.
There’s no doubt that using the right influencer to help sell your product or service can be very effective. However, just like any form of advertising, there are some steps you can take to avoid landing yourself in hot water.
Below are some tips to get the most out of your influencer arrangement:
Keep it real
Influencer advertising works because the customer feels that the influencer is trustworthy and that the endorsement is genuine. The creative authenticity of the influencer is their (and your) best asset, so avoid suggesting exactly what the influencer should and shouldn’t say.
For that reason, it’s definitely best to choose an influencer who already loves your product or service!
Disclose, disclose, disclose
Just like with any advertising – the information you give to customers should be accurate and must not be misleading.
Influencers will often accept payment or free products in exchange for their endorsement. Whilst sponsored posts are perfectly legal, they may create an obligation for the payment arrangement to be disclosed to consumers.
The influencer should always disclose their relationship with your business. Don’t shy away from this – consumers will appreciate the honesty!
Put it in writing
Consider having a written arrangement put in place with your influencer, even it’s a simple one-pager.
Your arrangement should ideally cover how many posts you expect them to make, limit them from retracting statements or deleting their posts, include guidelines on where and how to share the content (i.e. on Instagram?) and state exactly what the influencer is getting in exchange.
Taking this step could avoid serious headaches down the line.
TRACK YOUR RESULTS
How have your sales changed since taking on your influencer? Are customers being referred by the influencer, or are they coming from other forms of marketing?
Influencer arrangements work best when you can see exactly what you’re getting out of the arrangement, meaning you can fine-tune them for the next time.
Make sure you track your results to get the most out of your influencer arrangement.
– Marianne @Legalite
A big thank you to Marianne for sharing her insights and if you would like more information, or for help in drafting an influencer agreement, I strongly suggest getting in touch with Marianne and the Legalite Team.